Outlook on India’s Data Centre Industry

India is currently in the middle of its transition in becoming a developed market economy with its digital economy being a key catalyst in this journey. The size of the digital economy in India is estimated to grow from $ 200 billion in 2017-18 to a staggering $ 1 trillion by 2025. This growing demand brings forward the need for a robust and sustainable infrastructure for Data Centres.

Currently, India has about 770 megawatts (MW) of data centre capacity spanning 10.3 million sq. ft. As per Colliers’ report, data centre stock is expected to double in next 3 years to 20 million sq. ft by 2025.

India offers advantages of having a favourable geographical location on the world map, availability of economic resources, established global connectivity through submarine cables, easy and cost-effective access power and readily available skilled manpower provides, enabling the nation to become a global Data Centre hub.

India’s Opportunity in the DC Space
Climate change issues paired with supply chain disruption of sources of power generation has caused DC players to rethink their decision of setting up and shifting capacities to other locations. India offers advantages of having a favourable geographical location on the world map, availability of economic resources, established global connectivity through submarine cables, easy and cost-effective access power and readily available skilled manpower provides, enabling the nation to become a global Data Centre hub. Almost 85% of Indian data is in foreign locations which presents a huge demand for Data Centres due to the government’s push for data protection and localisation. GOI’s impetus on storage of sensitive data within the country, and digital initiatives are another tailwind in this space.